Yes, it’s that time again: Tax Day is approaching. When April 15th rolls around, it’s the deadline for filing returns.
This isn’t a task you want to leave for the night before. Taxes can be complex, and it can be time-consuming to complete even a fairly simple return. Preparing in advance can be an excellent idea.
Whether you plan to file on your own or use a professional tax service, you will need to gather a number of forms and documents. This checklist will help you pull together the information and paperwork you need to make the process go that much more smoothly.
The Basics of Filing Taxes
In a nutshell, filing your taxes tracks your income, taxes already deducted during the year, any credits and deductions, and other factors that impact what you may owe.
Below, you’ll learn about what documents you need to file your income taxes. The Internal Revenue Service (IRS) collects taxes from any business or individual that receives a regular monthly income. There are currently seven different tax brackets that divide individuals according to their annual earnings.
Of course, each person’s situation is unique, with different earnings, deductions, and circumstances that may impact how much they owe (or get refunded, in some cases). You can explore an in-depth guide to the 2025 tax season for more details, but now, consider the information you’ll need to collect before you can finalize your return.
Personal Information
First on your tax prep checklist is to gather some basic information about yourself and (if applicable) your spouse and children. This includes:
• Your Social Security or tax ID number
• Your spouse’s Social Security or tax ID number and birthdate
• Any identity protection PINs issued to you or family members by the IRS
• Your bank account number and routing number for the deposit of any refund you may be due or payment you owe, it you choose to pay that way
• Any foreign residency and reporting details, if that applies to you.
Dependents’ Information
If you have dependents, you’ll want to gather similar details about them, as above. The IRS defines a dependent as a qualifying child (who is either under age 19 or under age 24 if they’re a full-time student), or could be any age if considered to be permanently disabled. A qualifying relative can be a relative (say, a sibling or parent) who, if they have income, does not provide more than half of their own annual support. (One note: A spouse cannot be claimed as a dependent.)
In addition to dates of birth and Social Security or tax ID numbers, you will need records of child care expenses (and providers’ tax ID numbers), if applicable; details of earnings of dependents; and potentially form 8332 relating to custodial agreements for children, as needed. (You’ll learn a bit more about possible family-related tax deductions and credits below.)
Sources of Income
Next on the tax preparation checklist is to gather paperwork about your sources of income. Typically, this means W-2 and/or 1099 tax forms.
• For full-time employees, this will often be a W-2 form.
• For those who are self-employed (such as freelance and contract workers), 1099s will be needed. These are forms that document payment of funds from different entities.
• If you received payments for goods and services from an app or online platform, you might receive a 1099-K form if your earnings cross a certain threshold.
• If you received unemployment compensation (or any state or local income tax refunds), you’ll want to make sure you have a 1099-G reflecting these earnings.
• If you’ve earned interest or dividends, or sold investments, you will want to collect your 1099 forms that track these amounts.
• You will also need to pull together any 1099 forms that document Social Security or income from a pension, IRA, or annuity.
• Other forms of income will need to be accounted for as well, including jury duty, pay, prizes, awards, gambling winnings, trust income, passive income (such as earnings on a rental property you own), and royalties, among others.
Types of Deductions
Now that you’ve covered what you earned on the tax document checklist, it’s important to track possible deductions, which can lower your tax burden. Essentially, when you take a deduction, you lower the amount of income that will be taxed.
Many of these deductions will involve 1098 documents. Here are some of the more common tax deductions possible:
• Medical expenses: You may be able to deduct some medical expenses, so it’s wise to gather records of how much you paid. If your medical bills exceed 7.5% of your adjusted gross income, and you choose to itemize your deductions (rather than take the standard deduction), you may be able to deduct some of these expenses.
• IRA contributions: You may be able to deduct your contributions to a traditional individual retirement account (IRA). However, the deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds a certain level.
• Mortgage and property Taxes: You may be able to deduct your property taxes and the interest you paid on your mortgage if you itemize, so be sure to gather your paperwork related to homeownership.
• Charitable donations: If you itemize, you may be able to deduct any money or items you donated to a charity from your taxable income.
• Car expenses: If you’re self-employed and use your car exclusively or partially for work, you may be able to write off all or some of your car expenses.
• Educational expenses: Student loan interest (up to $2,500) is tax deductible. If you are self-employed, you may be able to deduct education expenses, provided the education improves your business or is required by law.
• Home office costs: If you’re self-employed, you may be able to deduct expenses related to maintaining a home office.
• State, local, and sales taxes: If you itemize, you may be able to deduct the state and local general sales tax you paid during the year, or the state and local income tax you paid during the year.
Tax Credits
Before you wrap up your tax prep checklist, you’ll want to collect any paperwork that could help you snag tax credits. As for deductions vs. tax credits, a deduction lowers your taxable income, while a credit gives you a dollar-for-dollar deduction in your tax liability. So if you can claim a $2,500 credit, that means your taxes owed are reduced by $2,500.
Here’s a look at some credits that can help you save on your taxes.
Student Credits
You may want to look into the following:
• American opportunity tax credit: You may be able to receive up to $2,500 as a credit for qualifying educational expenses during the first four years of higher education.
• Lifetime learning credit: You may be able to receive up to $2,000 per year as a credit for qualifying tuition and expenses.
Family and Dependent Credits
Consider whether you are eligible for the:
• Child tax credit: This is worth up to $2,000 per qualifying child under age 17.
• Child and dependent care credit: If you needed child or dependent care in order to work, you may be able to get back some of your expenses with this credit.
• Earned income tax credit (EITC): For low- to middle-income workers, the EITC could be from $632 to $7,830, depending on qualifying factors.
• Adoption credit: If an adoption was finalized in 2024, the adoptive parents may be eligible for a federal tax credit of up to $16,810.
Homeowner Credits
• Home energy tax credits: You might be able to take a credit of up to 30% on the costs of clean, renewable energy systems/equipment for your home, up to a limit.
Missed Deadline Penalties
Here’s another reason to prioritize this tax preparation checklist: If you don’t have your documents gathered and your return prepared, you might file late…or not be filing at all.
There are various penalties involved if you don’t make the filing deadline and/or you don’t pay the taxes you owe on time. Here’s how they break down:
• If you owe taxes and don’t file on time, the penalty is 5% of taxes owed for every month your return is late. The penalty won’t exceed 25% of your unpaid taxes.
• If you file more than 60 days after the filing due date, the minimum penalty is $510 (for 2024 tax returns filed in 2025) or 100% of your unpaid tax, whichever is less.
• If you file your taxes (or request an extension) on time but don’t pay the taxes you owe, the late payment penalty is 0.5% of taxes owed for every month the payment is late. The penalty won’t exceed 25% of your unpaid taxes.
• For any months in which both the late-payment and late-filing penalties apply, the late-filing penalty is reduced by 0.5% to 4.5%.
Interest also accrues on unpaid taxes, adding to the cost. Since all of this can cost you money and create considerable stress, it’s a good idea to get a head start so you have your tax prep documents together and can file on time.
The Takeaway
Filing taxes can be complicated and require gathering various forms and figures. It’s wise to start early and collect information related to your income, dependents, and possible deductions and credits.
Additionally, being prepared in advance to receive any refunds or make any potential subsequent tax payments is important. It can be wise to have a checking and savings account that earns you interest while making it simple to track your cash.
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